US President Donald Trump has cancelled a seminal ruling from the Barack Obama administration concerning greenhouse gases (GHGs), a decision expected to significantly alter federal climate policy.

The 2009 “endangerment finding” by the Environmental Protection Agency (EPA) identified certain GHGs as threats to public health, forming the foundation for subsequent emission control measures, particularly in the automotive sector.

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The announcement, made with EPA Administrator Lee Zeldin, represents one of the most significant climate policy reversals by the Trump administration.

Trump described the original finding as a damaging policy that negatively impacted the US automotive industry and increased consumer costs. He projected that the decision would eliminate more than $1.3tn in regulatory costs and reduce vehicle prices substantially.

The White House said that the reversal is expected to lower automobile costs by $2,400 per vehicle for automakers, the BBC reported.

However, environmental organisations argue that the move is the most formidable attempt yet to reverse progress on climate change and are preparing to contest the decision legally.

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The EPA’s original 2009 finding, established in the early days of Obama’s presidency, declared that six GHGs, including carbon dioxide and methane, posed a risk to human health. This finding became crucial as Congress remained divided on addressing rising global temperatures, underpinning federal emission reduction efforts thereafter.

Trump administration officials argue that overturning the ruling will save more than $1tn and reduce energy and transport expenses.

Responding to the decision, American Energy Alliance President Tom Pyle said: “Since its inception, the Endangerment Finding has been weaponised against projects and goods that deliver affordable, reliable energy to the American people. It has affected investment and infrastructure decisions in ways that have harmed US competitiveness, purely to advance a political ideology. 

“Rescinding the rule is an opportunity to reset policy, respect congressional intent, and ensure that any future framework is debated and decided by the people’s actual elected representatives.” 

Despite the Trump administration’s claims of cost savings and economic benefits, many environmentalists remain sceptical.

While the reversal allows the White House to ease climate change regulations, some observers warn of potential unintended outcomes.